Moving Average Calculator
Calculate the moving average for a time series.
Frequently Asked Questions (FAQs):
- What is a moving average, and why is it important?
- A moving average is a statistical technique used to smooth out fluctuations in data by calculating the average of a specified number of consecutive values. It's important in time series analysis for identifying trends and patterns within noisy or volatile data.
- What is the formula for calculating a simple moving average?
- The formula for calculating a simple moving average of n consecutive values in a dataset, denoted as x₁, x₂, ..., xₙ, is:
- Where k is the current position and n is the number of values to average.
- How do I interpret moving average results?
- Moving averages help identify underlying trends by smoothing out short-term fluctuations. They reveal patterns that might be obscured by noise. Shorter moving averages respond quickly to recent changes, while longer ones offer a broader perspective.